From a technical perspective, Dogecoin isn’t very innovative. Like many early altcoins, it’s based on the original source code of Bitcoin.
Or more technically, it’s based on Litecoin, which in turn was based on Bitcoin – but with some small modifications such as faster transactions and the removal of the supply cap. But Dogecoin is much more interesting when seen through a cultural lens.
The cryptocurrency was created by software engineers Billy Markus and Jackson Palmer – although Palmer, an Australian, has since walked away from the project.
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They branded it with the Doge meme partly to be funny, but also to distance it from Bitcoin’s then questionable reputation as a currency for illicit transactions.
Now, Dogecoin has outlasted almost all the early derivative altcoins and has a thriving community of investors. In 2014, Dogecoin holders sponsored the Jamaican Bobsled Team. Soon after, they sponsored a NASCAR driver.
Elon Musk, the world’s richest man, is among the cryptocurrency’s high-profile advocates. In December last year, a tweet from Musk sent Dogecoin’s price soaring.
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A CULTURAL PRODUCT
Reddit threads proclaim Dogecoin’s value as a new global currency. Musk himself shared a similar sentiment a few days ago. Speaking on the app Clubhouse, he said:
Dogecoin was made as a joke to make fun of cryptocurrencies, but fate loves irony. The most ironic outcome would be that Dogecoin becomes the currency of Earth in the future.
But Dogecoin is best thought of as a cultural product, rather than a financial asset. The reality is few cryptocurrency users hold it as a serious investment or to use in regular transactions.
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